Is This The End Of Cheap Food?

Washington Independent:

A sharp spike in prices for wheat, corn, rice and other staples has sparked riots in Mexico and Egypt, marches by hungry children in Yemen and the spectre of starving people in Haiti turning to mud pies for sustenance. This growing unrest is forcing the global community to focus on the causes of higher food costs and what can be done. But it's also raising the troubling possibility that cheap prices for food may be gone for good, an economic relic of the the past.

That scenario would be disastrous for the progress of fighting poverty in poor countries - and it would threaten to halt a long period of rising living standards in the United States tied directly to the inexpensive cost of food.

"Don't look now, but the good times may have just stopped rolling," the economist Paul Krugman wrote in his New York Times column. The Economist was more strident: "The era of cheap food is over," it declared. World Bank President Robert Zoellick, reaching back to policies created during the Great Depression for inspiration to address food inflation, is pushing a "New Deal" for global food policy, aimed at aiding impoverished countries with income support and help in producing crops.

The gloom-and-doom outlooks are prompted by rising prices for commodities, which started increasing steadily in 2001 before suddenly soaring recently. Wheat prices have gone up by 181 percent over the past three years, according to the World Bank; food prices around the globe have risen by 83 percent during the same period. In March, rice prices hit a 19-year high. Corn prices recently rose from $2.50 a bushel three years ago to $6, for the first time. Zoellick has predicted a sustained period of higher food costs, saying he expects prices to remain elevated through next year and stay above 2004 levels for at least the next seven years.

Read the whole story: Washington Independent

Comments

[Wiredwilly]

No, it's not the end of cheap food, it's the beginning of hyper-inflation and the collapse of the dollar.

[jasjohn128]

Well, what did anyone expect? For years now, plenty of us have been posting up here and elsewhere to argue and re-state the obvious, which is that George W. Bush is, was, and always will be a burnt-out drunk and drug addict, recognized as such and so hired by thieves to help them steal everything in America that wasn't nailed down. Looks like they've won, doesn't it?

Listen: George W. Bush is a front man, a shill, a worthless punk. That's who he is in this life, and that's why he was selected to be President. He's done the job he set out to do by serving the thieves who put him in office and who will take good care of him when he leaves.

Infecting and ultimately ruining institutions that make up the United States government - from the Department of Defense right down to the lowliest federal office - has been part and parcel of Bush's promise to the right-wingers to "Drain the Swamp" of everything they hate so much about our country and form of government.

Food prices through the roof? Didn't see it coming? Big surprise to you? Didn't think that what's done in government will ultimately affect your daily life?

It does. And criminals have been in charge since 2001. Nobody alive in America today is ready for what's coming next - unless they lived through the 1930's and haven't forgotten.

[Vyvjala]

Griffin's thought, "when you starve with a tiger , the tiger starves last."

[gakabani]

I just came back from the supermarket and guess what, my bill was $39 and cents for six things. Milk just went to the roof here in Maryland ($5.50 a gallon), white bread is almost $5 and $2.50 for yeasterday's bread.

OK, this president, his name is not even worth mentioning, has destroyed our country with his stupid policies. However, he is to become a multi-billionaire after leaving office. Just see.

We are all irrelevant. No wonder he is looking to wage war with Iran.

[richardmcnoggin]

Hey; don't complain we could have started drilling in ANWAR 10 years ago. Or off the many costal oil fields around the USA. But NOOOOOOO..­.. Have to protect that insect, rodent, flying rat, et al. So now we sit here complaining about the fraud of global warming; demanding the goverment bail us out. Hey ; you elected DEMs. Now food prices and shortages of food worldwide because of a FRAUD called global warming and the now debunked myth of biofuels, low sulfer diesel, etc... Sit in your shit nest and enjoy it.... FOOLS!!!!!

[nanotubz]

If the past is any indication, most if not all of Anwar would have headed west to the Far East. Even with best estimates the Anwar reserves would shave cents off the price per barrel. Ans the gas costs here have more to do with refining capacity, than the actual available supply of oil. Any more fairy tales?

[totalliberal]

Maybe blowing food out our tailpipes is not such a great idea.

[Podewumun]

ROFLMAO!!!

That could be taken two ways, totalliberal! LOL!

[WIpatriot]

Beat me to the punch, Po'.

[going2ireland]

My goodness, where have I been? I wasn't aware that food had been all that cheap!!! And now to find out that the "cheap" food won't be cheap any longer - just amazes me!!!

Whoever wrote that piece hasn't done the regular grocery shopping since - well probably never!!!

[peaceandfreedom]

If anyone here believes that this is not just another market manipulation ala OPEC, think again. This article appeared on the back page of my business section this morning and I found it here...

http://www.signonsandiego.com/news/business/20080422-0715-foodprices-speculation.html

Farmers, ranchers, grain processors and food producers all recognize that;

"Farmers and food producers argue speculation by Wall Street Investors--not a supply and demand imbalance--is what's driving up prices and volatility, making it harder for the commercial buyers and sellers of grain to use the exchanges as a tool for limiting the risks of price uncertainty!"

Where have we seen Wall Street speculation most recently lead to a financial meltdown and subsequent Socialist bailout? Even the Commodity Futures Trade Commission as much as admitted that a fix was needed when they said, "Your suggestions (that Funds report their cash positions to regulators weekly) may alleviate your particular problem..b­ut may cause bigger problems for the market as a whole!"

If people want to climb on the "Oh my god were all gonna starve it's the end of life as we know it" train, I can't stop you. But you'd think as many times as we've taken in the butt over the last 7 years, that there would be some level of awareness that we are being Gamed in every way possible, and that the time is at hand for more than talking or voting.

[WIpatriot]

We just need a few more crises to wake up a few more people, then we can get people off their butts.

[peaceandfreedom]

Well, I'm a non-violent passive protesting kinda guy who believes that when a mass of humanity is mobilized that even the bad guys need to take notice and change their ways--at least till we go to sleep again. But, as i told Abbie Hoffman's ghost--and as you have intimated with your post--it really isn't until business as usual becomes threatened, and not necessarily by threat of force, that things change. We need to change. Then the system will change.

[Citizenofreality]

Your post is right on target peaceandfreedom. Anyone who believes the manufactured myths about increased demand from india and China is living in a fairytale world. Someone is making money from this and they are making LOTS of it.

[Jeremiah256]

There's not much of a buffer left for the American middle class. It generally takes both parents working full time to just stay afloat,and everyone is competing for a dwindling supply of jobs and working more hours for less money/benefits. The experts lauded this as a positive - "Americans are so productivity", the bragged. And Americans took pride in it when they should have recognized it for the exploitation that it was. Slaves are pretty preductive, too. And all we did was neigh, "I will work harder". Meanwhile time with our kids was sacrificed and everything changed such that it's cheaper and easier to plop down pre-packaged meals and fast foods instead of healthier alternatives. Obesity rates will continue to climb in America as long as a gallon of milk costs more than a gallon of Coke.

And while our government was spending their time on building fences to keep people out of taking our low paying jobs, they neglected to build economic fences to keep higher paying jobs in the US.

If the middle class had a flag, it would be a picture of Rodney Dangerfield because we get no respect.

[WIpatriot]

Jeremiah, what makes you think the elites wanted "to keep higher paying jobs in the US."?

[LiberalBuzz]

All due to greed. Farmlands taken over by corporate giants who want to actually NOT grow anything in order to get government handouts, farmlands turned into huge housing tracts which were mostly taken over by speculators in order to drive up their profit margins.

Government more interested in lining the pockets of it's big money donors TODAY rather than look at the long term effects of it's policies.

A war without end if McBush has it's way which is also driving up oil prices.

And the nonsense that corn is the solution to our energy needs and grown by farms that are ALSO getting government subsidies to keep prices higher.

One has to wonder at what point the French Revolution is used as a blueprint for getting our government back from the corporate pimps that use the congress as it's HO's. One can easily see several congressmen and women along with Bill Gates and others lobbying hard to import cheap labor to help drive down the middle class further, being pulled along in donkey carts on their way to the Blade.

The LOVE of money is the root of all evil

And we have a lot of people worshiping at the Altar Of The Almighty Buck.

[BushBites]

Good point.

I wonder how much farmly was turned into housing that nobody can afford?

Seems like they've been plowing over corn fields like crazy here, just to build McMansions that are now standing empty.

Oh well, I guess if food prices go high enough, they can always tear down those Pug-Ugly McMansions and use the land for farming again.

[jackpinesavage]

Actually, we can't. Most of the time, the quality soil is stripped from farm land before building and sold here or there as topsoil. The bring in fill dirt, and compact whatever is left into nonarable ground. A little bit of the old top soil might be spread on top for growing a lush lawn, but that's about it...not the 2+ feet of black, loamy soil that used to be there.

[gcallaghan]

What to do? Let's just eat the rich

[CaptainHowdy]

This is complete and utter nonsense that is coming from the oil industry. They are trying to scare people off from using biofuels.

And Huffpo is right in there... carrying their watter for them.

[mmckinl]

Biofuels, that take more energy than than they hold? That use up prime farmland and water resources while adding pollution from their heavy fertilization and pesticide use?

[Podewumun]

BINGO! Right all around, mmckinl.

[WIpatriot]

...which are made from oil, Cycle complete.

[GerryS]

Yep, Bushco is finally on the brink of their goals.
1) destroy the middle class- this is around the corner.
2) The New World Order,One World Government

Everybody is a prole, except the "leaders" that is

[thegreatgiginthesky]

Watch the new Roman empire sink to its knees. Thanks Mr. Bush.

[Stretchumall]

Time to brushup on our survival skills.

[studlyguy]

Yep, with energy and everything skyrocketing causing other goods to skyrocket in general,next up who knows,but I have a feeling it isn't going to be pretty.